REAL ESTATE DEMAND IN PHUKET REMAINS ROBUST IN 2024
At the seminar titled “Investment Opportunities in Phuket Real Estate – Latest Market Trends” on June 14 at the Novotel Phuket City Phokeethra Hotel, Sopon Pornchokchai from the Thai Real Estate Research and Valuation Centre, part of the Agency for Real Estate Affairs Co., Ltd. (AREA), expressed concerns over the diminishing availability of land in Phuket due to skyrocketing prices.
He noted that, according to a study tracking land prices from 2004 to 2024, there has been an average increase of 7.47 times, or an annual rate of 10.7%. This rate significantly surpasses other regions in Thailand. Specifically, Rawai Beach experienced the steepest price increase, with land prices multiplying by 14 times. This was followed by Bang Tao Beach and Mai Khao Beach, with increases of 10.67 and 9 times, respectively. Slower price growths were observed in areas like Sapam Bay, Karon Beach, and Sirey Island.
Despite these high land costs, the demand for real estate in Phuket remains strong. As of this year, the highest land prices are found on Patong Beach, with AREA estimating the cost at 350 million baht per rai. Other expensive areas include Bang Tao Beach, Surin Beach, and Karon Beach, with land priced around 80 million baht per rai, considerably above government valuations.
Discussing new developments, he mentioned that in the first quarter of 2024 alone, about 25 projects were launched, resulting in 4,000 new units valued at 54 billion baht, averaging 13 million baht each. The majority of these, worth 45 billion baht or 83% of the total, were vacation condominiums located primarily in the Thalang District.
Over the last year, approximately 10,000 real estate units were sold in Phuket, accumulating a total of 90 billion baht, with an average sale price of 9 million baht per unit. Once again, most sales occurred in Thalang District, with vacation properties moving quickly while those aimed at Thai residents selling more slowly.
As of early 2024, around 500 real estate projects were on the market in Phuket, encompassing about 72,000 units with a development value of 460 billion baht. Of these, 62,000 units have been sold, leaving roughly 10,000 units available.
Overall, the Gross Provincial Product of Phuket stands at 110.648 billion baht, with real estate activities contributing 6.281 billion baht or 5.7%. However, the actual value of real estate development in Phuket is much higher, comparable to Florida, where real estate contributes 24% to the Gross State Product.
In 2023, Phuket welcomed 8,376,464 tourists, marking a 152.29% increase from the previous year. This compares to Bali’s 5,273,258 tourists and the Maldives’ 1.8 million, confirming Phuket’s status as the most popular tourist destination in the region and one of the top globally.
* Source www.nationthailand.com
